The corporate earnings season kicks into high gear this week, with investors looking for more clues on the health of corporate America. Fifty-eight S & P 500 companies are slated to report, including Netflix and banking giant Goldman Sachs . Procter & Gamble and Tesla are also on deck to report. Earnings expectations for this season are downbeat. Refinitiv data shows analysts expect S & P 500 earnings fell more than 5% in the first quarter. To be sure, the first batch of results paints a more promising picture. JPMorgan Chase , Wells Fargo and UnitedHealth all posted better-than-expected earnings on Friday. Overall, roughly 30 S & P 500 companies have reported first-quarter earnings, with 90% of them beating estimates, per FactSet. Take a look at CNBC PRO’s breakdown of what’s expected from each report. Monday Charles Schwab is set to report earnings before the bell. Management is slated to hold a conference call at 9 a.m. ET. Last quarter: SCHW reported fourth-quarter net revenue of $5.49 billion, up 17% from the year-earlier period, and an adjusted profit per share of $1.07, a 24% increase. This quarter: Analysts polled by Refinitiv expect double-digit earnings growth for the brokerage. What CNBC is watching: Charles Schwab was caught up in the recent banking crisis resulting from the collapse of Silicon Valley Bank and Signature Bank, as traders feared the brokerage could suffer client withdrawals. Through Friday’s close, the stock is down 39% for the year. The company defended its financial position last month, noting it has a low loan-to-deposit ratio and strong liquidity . Investors should also watch for clues on how cash sorting — when clients move money from low-yielding deposit accounts into higher-yielding ones — impacted Schwab’s business in the first quarter. “Year-to-date, SCHW’s consensus ’23 EPS estimate has fallen by 23% to $3.77 currently,” wrote Piper Sandler analyst Richard Repetto. “The primary driver of the EPS decline has been persistent client cash sorting.” What history shows: Data compiled by Bespoke Investment Group shows Schwab’s earnings beat expectations 55% of the time, and the stock averages a 0.3% gain on earnings day. However, Schwab shares fell more than 2% on the company’s last two earnings days. Tuesday Johnson & Johnson is set to report earnings before the open, followed by a call with management at 8:30 a.m. ET. Last quarter: JNJ posted earnings per share that beat a Refinitiv consensus estimate, though revenue was slightly lower than anticipated. This quarter: Analysts expect J & J’s profit fell slightly year over year, per Refinitiv. What CNBC is watching: J & J is trying to put thousands of claims that its talc products caused cancer behind it. Earlier this month, the company proposed paying nearly $9 billion to settle those claims , lifting the stock. Investors will look for updates on that front from the pharmaceutical giant. Bank of America analyst Geoff Meacham also expects Johnson & Johnson’s multiple myeloma treatment Darzalex to continue gaining market share. What history shows: J & J has a strong track record of outperforming earnings expectations, with Bespoke noting the company beats estimates 95% of the time. FactSet data also shows J & J hasn’t beaten expectation in every quarter since 2011. Bank of America is set to report earnings in the premarket, with corporate leadership slated to hold a call at 8:30 a.m. ET. Last quarter: BAC reported fourth-quarter earnings that topped estimates , as higher rates offset declines in the investment banking revenue. This quarter: The banking giant is expected to report a slight year-over-year earnings per share increase, Refinitiv data shows. What CNBC banking reporter Hugh Son is watching: “Bank of America was a top pick for analyst Mike Mayo and others this year because of its heightened sensitivity to higher interest rates. That makes recent developments crucial at the second biggest U.S. bank by assets; while BAC is expected to gain deposits in the post-SVB flight to quality, BAC should also see higher funding costs as banks now have to compete for depositors’ cash.” What history shows: Bank of America earnings per share have exceeded expectations in 10 of the last 12 quarters, per FactSet. The stock has also posted solid gains in its last two earnings days, rising more than 2% and over 6% on Jan. 13 and Oct. 17, respectively. Goldman Sachs is set to report earnings before the open, followed by a call at 9:30 a.m. ET. Last quarter: GS reported its biggest earnings miss in a decade, with revenue falling and expenses climbing . This quarter: Goldman’s profits are expected to have tumbled in the first quarter, per Refinitiv. What CNBC banking reporter Hugh Son is watching: “Goldman Sachs is mostly removed from recent turmoil tied to retail banking deposits, but that doesn’t mean the bank is expected to shine this quarter. Still-subdued investment banking revenues and questions about 1Q trading results are likely to weigh on results. Analysts will want to hear if CEO David Solomon has decided on ‘strategic options’ for the bank’s remaining consumer operations, as he hinted in February.” What history shows: Bespoke data shows Goldman tops earnings expectations 86% of the time. However, the stock struggles on earnings days, averaging a loss of 0.1%. On Jan. 17, its most-recent earnings day, Goldman shares fell more than 6%. Netflix is set to report earnings after the bell, followed by a call with management at 6 p.m. ET. Last quarter: NFLX reported much higher-than-expected subscriber numbers . This quarter: The streaming giant’s earnings are expected to have fallen more than 20% year over year, according to Refinitiv. What CNBC media reporter Lillian Rizzo is watching: “Netflix’s subscriber count will remain the focus during its first quarter earnings – a year since it reported its first loss in subscriber count in a decade, a signal to the market the streaming business isn’t ironclad. Although Netflix beat subscriber expectations during the fourth quarter, and its stock has been rebounding, this remains an important metric for the streaming industry. Investors will also pay close attention to how many subscribers the ad-supported tier gained, which was introduced late last year as a cheaper option to attract more customers. Additionally, Netflix began its crackdown on password sharing in certain markets like Canada and Spain. Wall Street will look to see how those markets performed in response, especially as Netflix will continue rolling out initiatives to mitigate password sharing across its entire customer base. What history shows: Bespoke data shows Netflix struggles on earnings days, losing about 0.1%. However, the stock popped more than 8% after the company posted its fourth-quarter results. United Airlines is set to report earnings after the close. A conference call is also scheduled for the following day. Last quarter: Strong travel demand led to better-than-expected results for UAL . This quarter: Analysts expect the airline’s revenue grew by about 50% from the year-earlier period, per Refinitiv. What CNBC airlines reporter Leslie Josephs is watching: “United will reveal whether it’s as upbeat about Q2 as Delta was, as both carriers push to grow international flying ahead of the peak summer season. Investors should also look for updates on whether United will be able seal a new pilot contract like Delta has and how it’s managing still-elevated costs. The carrier’s executives will likely face questions about how much it can grow this year considering an air traffic controller shortage and aircraft delays from manufacturers.” What history shows: United Airlines outperforms earnings expectations 68% of the time, Bespoke data shows. However, the stock also averages a 1.1% decline on earnings days. Wednesday Morgan Stanley is set to report earnings before the bell, followed by a call at 8:30 a.m. ET. Last quarter: MS ‘ earnings beat expectations thanks to record wealth management revenue . This quarter: Refinitiv data shows analysts expect Morgan Stanley to report a sharp year-over-year earnings drop. What CNBC banking reporter Hugh Son is watching: “Morgan Stanley has gained plaudits for its strategic shift to wealth management, and its relatively large share of revenue from wealth and asset management has helped offset subdued results in investment banking in recent quarters. There’s no reason to believe this quarter will be any different.” What history shows: Morgan Stanley earnings have exceeded expectations in nine of the last 10 quarters, per FactSet. The stock soared after Morgan Stanley reported fourth-quarter earnings in January. However, it dropped more than 5% in October on the back of its third-quarter results. IBM is set to report earnings after the close. A call with analysts is also slated for 5 p.m. ET. Last quarter: IBM ‘s revenue topped estimates, and the company said it will cut 3,900 jobs . This quarter: Revenue is expected to have grown marginally from the year-earlier period, per Refinitiv. What CNBC tech reporter Jordan Novet is watching: “IBM had a solid run in 2022 as rising interest rates and recession talk inspired investors to seek a safe haven. The picture looks different now. Shares of IBM, the defensive dividend payer, are down 9% year to date, while growthier technology stocks such as Alphabet and Amazon are up more than 20%. Bernstein and Credit Suisse analysts are concerned that IBM might not reach its 2023 target of year-over-year revenue growth in the mid-single digits. IBM relies on mainframe computers and related products for meaningful revenue, and banks represent a key mainframe customer category. Commentary on risks stemming from recent bank failures would be notable. Executives might also address a Wall Street Journal report saying IBM was looking at selling its weather unit for over $1 billion, after buying it for $2 billion in 2016. What history shows: IBM beats earnings expectations 83% of the time, per Bespoke. However, the stock averages a 0.65% decline on earnings day. In fact, IBM shares have fallen in three of the company’s last four earnings days. Tesla is set to report earnings after the bell, followed by a call with management at 5:30 p.m. ET. Last quarter: TSLA ‘s fourth-quarter revenue reached a record , helping the company beat earnings expectations. This quarter: Analysts see strong revenue growth for the electric car maker, but they also expect a sharp year-over-year drop in earnings per share, according to Refinitiv. What CNBC is watching: Investors should be on the lookout for clues on how Tesla’s price cuts are impacting the electric car maker’s financials — and whether they could lead to increased demand for the company’s vehicles. Tesla earlier this month cut prices in the U.S. for the fifth time since January. Baird analyst Ben Kallo wrote Thursday that Tesla’s “leadership in scale, technology, manufacturing, cost, and depth of talent continue to differentiate it from competitors.” However, Bernstein’s Toni Sacconaghi, who has an underperform rating on the stock, thinks Tesla will continue cutting prices. “Make no mistake – the price cuts reflect Tesla’s need to stimulate demand and are an explicit trade off of margins for volume,” Sacconaghi said. What history shows: Bespoke data shows Tesla beats earnings expectations 66% of the time. The EV maker has done better recently, however, with FactSet showing the company’s profit topping estimates in nine of the last 10 quarters. Friday Procter & Gamble is set to report earnings before the open, with a conference call also slated for 8:30 a.m. ET. Last quarter: PG earnings and revenue fell, even as the company raised prices to mitigate declining sales. This quarter: Refinitiv data shows analysts expect marginal year-over-year declines for the company’s earnings and revenue. What CNBC is watching: Procter investors have something to smile about heading into earnings. The company announced Tuesday it increased its quarterly dividend by 3% to 94.07 cents per share. To be sure, Evercore ISI analyst Robert Ottenstein thinks Procter’s fiscal third quarter “could be a transitional quarter. Financially, the deceleration of commodity costs isn’t as material yet as to offset increases in conversion fees, with suppliers passing on their inflation –labor, energy, and delayed maintenance costs — while a fresh round of pricing in the U.S. fell late in the quarter to tie with retailers’ shelf resets.” What history shows: Procter & Gamble’s earnings per share have beaten expectations in all but three quarters since 2015, FactSet data shows. — CNBC’s Michael Bloom contributed reporting.
